MSE News: Summer Budget 2015: Peer-to-peer savings to be included in ISAs

Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
in ISAs & tax-free savings
Peer-to-peer savers will be able to get their 'interest' tax-free from April 2016...
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Summer Budget 2015: Peer-to-peer savings to be included in ISAs

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Comments

  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    So I have until April '16 to absorb all jamesd's advice, and then put a toe in the water.
    Free the dunston one next time too.
  • AndyT678
    AndyT678 Posts: 757 Forumite
    First Anniversary Combo Breaker
    MSE_Helen wrote: »
    Under the new proposals, which will be voted on later this year, anyone who lends money to other individuals over a peer-to-peer platform (which is effectively the same as saving the money) will be able to do this within an ISA wrapper.

    Am I reading that right? Are MSE really saying that lending money with all the associated default, liquidity and platform risks is THE SAME AS saving in an FSCS protected bank account?
  • masonic
    masonic Posts: 23,242 Forumite
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    MSE_Helen wrote: »
    The limit will be the same as a standard ISA, currently £15,240 (which will rise in line with inflation).
    A separate limit that is set at the same level as a standard ISA, or the same limit shared between cash, S&S and P2P?

    If it is a shared limit, then I'd be pretty hesitant to make use of it for the reasons AndyT678 alludes to. Even S&S ISAs have FSCS cover against fraud and nominee insolvency. It's completely unclear what would happen if a P2P platform offering ISAs went 'pop' - the FSCS protects the ISA status of savings/investments, but with no FSCS would the ISA wrapper simply evaporate and be lost?

    Presumably this will also discourage people from diversifying across platforms if it's only one IF ISA per tax year.
  • Jenna_Appleseed
    Jenna_Appleseed Posts: 4,819 Forumite
    First Anniversary First Post Name Dropper
    Martin Lewis appears to disagree with this article on his twitter
    https://twitter.com/MartinSLewis/status/619102513502023680
    Martin LewisVerified account
    ‏@MartinSLewis
    I agree, its not our subject. I'm going to get it deleted. I was out of the office filming yesterday.
    12:15 PM - 9 Jul 2015
    "And suddenly I find myself listening to a man I've never known before,
    Telling me about the sea..."
  • canterswest
    canterswest Posts: 364 Forumite
    Jenna_Appleseed wrote: »
    Martin Lewis appears to disagree with this article on his twitter
    https://twitter.com/MartinSLewis/status/619102513502023680

    Martin Lewis stood down and is part time chairman so no longer in control of what appears on the website.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    canterswest wrote: »
    Martin Lewis stood down and is part time chairman so no longer in control of what appears on the website.

    Not effective until sometime in September http://www.moneysavingexpert.com/news/site/2015/07/martin-lewis-to-remain-at-moneysavingexpertcom-in-new-role-as-chairman?_ga=1.5257459.1792643167.1435847652
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